High Real-Estate Prices Incite
Hong Kongers to Move to China

By

Michelle Munn Staff Reporter of The Wall Street Journal

Updated Aug. 10, 2001 12:01 a.m. ET

HONG KONG -- Louis Chan, 30, tried to join in the Hong Kong property boom in 1997, back when housing was changing hands at a record pace and driving up prices. He even secured a loan in case his name was drawn in a lottery of 1,500 applicants vying for 550-square-foot apartments priced at US$300,000 in the suburban town of Fan Ling.

But that same year the boom went bust, and Mr. Chan is now relieved his name wasn't drawn. "Since '97, I don't think Hong Kong is very competitive compared to China, compared to...